Nissan World of Denville Blog

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How To Finance a New Car: Expert Tips

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Auto financing is part art, part science, and part common sense. Here at your preferred Denville, NJ Nissan new car dealership, Nissan World of Denville, our goal is to make sure that you get financed with either a loan or a lease that suits your budget and your lifestyle.

Auto Financing

We want you to be comfortable with the process of applying for auto financing. We believe that by educating yourself on the ins-and-outs of auto financing, you’ll be better equipped to understand your financing options when it’s time to sit down with our finance specialists and finalize the purchase or lease of your new or pre-owned Nissan.

We’d also like to tell you about some worthwhile financing options and benefits available to you here at your hometown Nissan dealership near Parsippany-Troy Hills, NJ.

Purchase VS Lease Explained

Lease or Buy a Car

So, let’s get started. The first thing we want to do is define the difference between leasing and buying a car. This is important to know because whether you lease or buy will directly affect several key factors in getting financed, including monthly payments, annual percentage rate (APR), and fees.

When you buy a new Nissan or pre-owned vehicle, you enter into a sales contract that’s similar to the purchase of a house or any other big-ticket item on credit. The fundamental difference between financing and leasing is that when you pay off your Nissan, you own it, just like you would when you pay off your home’s mortgage. However, when you lease your vehicle, you are basically “renting” the car for a particular time period.

Think of it in the same way you would about renting a house or apartment. In either case, when you lease a car you don’t build up any equity in the vehicle over time, much like when renting or leasing a house. But if you choose to buy the vehicle, you do accrue equity similar to the equity would you accumulate when buying a home.

There are some other important differences between buying versus leasing a car you should know about. Vehicle leases limit the number of miles you can drive during a calendar year. But if you purchase the car, you can drive it as much as you want. You may also be charged a reconditioning fee when you turn in your leased vehicle if you haven’t taken good care of it.

But there’re some upsides to leasing. First is choice. You can either turn the vehicle in and walk away or refinance the balance owed and keep the car. Second, because you are financing just the estimated residual value of the vehicle when you lease it, rather than the full purchase price, you may qualify for a lower down and lower monthly payment.

If you choose to purchase, rather than lease, you won’t be subject to any mileage or other restrictions. You’ll build equity in your vehicle and have the option to keep it, trade it in, or sell it to a private party.

Ultimately, your driving habits, budget, and lifestyle will help determine whether a vehicle lease or purchase is right for you.

Special Nissan Lease Programs

Car Loans & Leases

Here’s some more good news. You may qualify for some outstanding lease offers here at Nissan World of Denville that make leasing a new Nissan a more attractive alternative. For instance, you may be able to get 0% financing and $0 down at lease signing with approved credit. You may also qualify for bonus cash and other incentives.

We also have two special lease programs to tell you about. Our Nissan Lease Return Center makes it easy to return your leased Nissan regardless of where you purchased it. We help you with all the necessary paperwork to make this process as hassle-free and convenient as possible.

We also offer our exclusive “Pull Ahead Program.” This is exciting news if you’ve leased a Nissan from us or from any other dealership because of the many special incentives it offers.

Now that you know the basic differences between purchasing and leasing, here are a few “insider” tips about auto financing to help you make the right decisions and the process a whole lot easier.

Helpful Auto Finance Tips

Auto Financing Tips

  1. Develop A Budget – First things first. Sit down and figure out how much you can afford to spend on a new or pre-owned vehicle. Experts suggest spending no more than 25% of your monthly household income. Remember to consider other factors, such as maintenance and car insurance.
  2. Know Your Credit Score – It’s very important that you know what your credit score is. Your credit, or “FICO” score is determined by a number of factors. There are three different credit reporting agencies: Equifax, Experian, and TransUnion. You can request a credit report from them, or use a third-party website such as CreditKarma.com.
  3. Choose Between New Or Used – If you want a brand-new car with all the latest bells and whistles, then one of our 2017 Nissans for sale near Morristown, NJ may be right for you. If you’re on a budget, one of our many excellent used cars under $15,000 for sale near Denville, NJ may be just the ticket. Or, a perfect compromise between new and used may be one of our many Nissan Certified Pre-owned vehicles that offer like-new quality for often thousands less than the cost of a new car.
  4. Learn The Lingo – Finance contracts can sometimes contain confusing terms and language. For example, “APR” stands for “Annual Percentage Rate.” It’s calculated by multiplying the interest rate (the amount of money banks charge you for the loan) by the number of periods in a year. The down payment is the amount of cash you are paying up front to reduce the amount of the loan or the lease. The more money you put down, the lower your monthly payments.
  5. Comparison Shop Online – We invite you to visit our Denville Nissan website and shop for the new Nissan of your dreams from the comfort of your own home. We have hundreds of vehicles to choose from and special Internet pricing that make them a great value. Pick out the cars you’re interested in and give us a call to schedule a sales appointment and test drive.
  6. Apply For Financing Online – Save yourself some time by applying for auto financing online. We make it quick and easy.
  7. Read The Contract Carefully – Buying or leasing a car is a big decision and not something to be taken lightly. Remember that you are signing a legal and binding contract that spells out your rights, responsibilities and obligations. Take the time to read it over. If you have any questions, our trained and courteous Auto Finance Specialists will be happy to walk you through the document so you clearly understand the agreement you are entering into.

Expert Auto Finance Advice

When you educate yourself about the financing process, you’ll be ready to sign on the dotted line and drive home in your beautiful new Nissan knowing that you did your homework and were prepared. We’re committed to your total satisfaction. Feel free to contact us with any questions you may have about financing your next vehicle at our dealership.

Nissan World of Denville is conveniently located at 3057 NJ-10, Denville, NJ 07834. Call us today at 877-726-1182.

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Sources:

https://www.nissanfinance.com/?tool=footer.financing.link

http://www.bankrate.com/finance/auto/car-buying-tips/

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